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103-560: The Seals were the least successful of the teams added in the 1967 expansion, never earning a winning record and only making the playoffs twice in nine seasons of play. Off the ice, they were plagued by low attendance. The franchise was relocated in 1976 to become the Cleveland Barons , who would merge with the Minnesota North Stars two years later. They were the only franchise from the 1967 expansion never to reach

206-495: A motion to dismiss , plaintiffs, under Bell Atlantic Corp. v. Twombly , must plead facts consistent with FRCP 8(a) sufficient to show that a conspiracy is plausible (and not merely conceivable or possible). This protects defendants from bearing the costs of antitrust "fishing expeditions"; however it deprives plaintiffs of perhaps their only tool to acquire evidence (discovery). Second, courts have employed more sophisticated and principled definitions of markets. Market definition

309-553: A competitive marketplace to protect consumers from abuses. In Spectrum Sports, Inc. v. McQuillan 506 U.S. 447 (1993) the Supreme Court said: The purpose of the [Sherman] Act is not to protect businesses from the working of the market; it is to protect the public from the failure of the market. The law directs itself not against conduct which is competitive, even severely so, but against conduct which unfairly tends to destroy competition itself. According to its authors, it

412-455: A more sophisticated market definition that does not permit as manipulative a definition. Section 2 of the Act forbids monopoly. In Section 2 cases, the court has, again on its own initiative, drawn a distinction between coercive and innocent monopoly. The act is not meant to punish businesses that come to dominate their market passively or on their own merit, only those that intentionally dominate

515-747: A new 17,000-seat arena in San Francisco. However, when those plans fell through later in 1975, the NHL dropped its remaining objection to moving the team. Minority owner George Gund III persuaded Swig to move the team to his hometown of Cleveland for the 1976–77 season . The team was named "Barons" in honor of the successful team in the American Hockey League (AHL) that played in the city from 1929 to 1973, winning nine Calder Cups . The AHL Barons' owner, Nick Mileti , moved that team to Florida in favor of his Cleveland Crusaders team in

618-716: A professional ice hockey team in the National Hockey League (NHL) from 1976 to 1978. They were a relocation of the California Golden Seals franchise that had played in Oakland since 1967. After just two seasons, the team merged with the Minnesota North Stars (now the Dallas Stars ). As a result, the NHL operated with 17 teams during the 1978–79 season . As of 2024, the Barons remain

721-661: A record crowd of 13,110 saw the Barons tie the Philadelphia Flyers 2–2. It did not last; they only won a total of four games in February and March, crumbling to last place again. The Gunds aggressively marketed the team, but got little to show for it. The Barons only attracted a total of 7,000 fans during their three-game winning streak in January. They were also unable to get favorable deals for radio or television, denying them another potential revenue stream. After

824-404: A single entity, and that the teams were not competitors in an economic sense, so the league restrictions on relocation were not a restraint of trade. For the 1969–70 season the team was sold to Trans-National Communications , whose investors included Pat Summerall and Whitey Ford . However, the group filed for bankruptcy after missing a payment and relinquished the team to Van Gerbig, who put

927-440: A state requires conduct analyzed under the rule of reason, a court must carefully distinguish rule of reason analysis for preemption purposes from the analysis for liability purposes. To analyze whether preemption occurs, the court must determine whether the inevitable effects of a statutory restraint unreasonably restrain trade. If they do, preemption is warranted unless the statute passes the appropriate state action tests. But, when

1030-496: A statute is attacked on its face or for its effects. A statute can be condemned on its face only when it mandates, authorizes or places irresistible pressure on private parties to engage in conduct constituting a per se violation of Section 1. If the statute does not mandate conduct violating a per se rule, the conduct is analyzed under the rule of reason, which requires an examination of the conduct's actual effects on competition. If unreasonable anticompetitive effects are created,

1133-528: A sufficient reason for invalidating the ... statute. For if an adverse effect on competition were, in and of itself, enough to render a state statute invalid, the States' power to engage in economic regulation would be effectively destroyed. This indicates that not every anticompetitive effect warrants preemption. In neither Exxon nor New Motor Vehicle did the created effect constitute an antitrust violation. The Rice guideline therefore indicates that only when

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1236-506: A trend of the period. However, this was all for naught, as the Seals finished with the worst record in the NHL that year. Other innovations that Finley's Seals incorporated, were the inclusion of player names on the back of the jerseys, which then set the precedent for today's 32 current NHL teams identifying players in the same fashion. Finley also was the first owner to allow players to fly first class on commercial flights to games, thus starting

1339-415: A trend that ultimately culminated in NHL teams regularly chartering aircraft by the 21st century. The Seals regularly used the new Boeing 747s the airlines had put into service at the time. Finley also introduced the flamboyant green and gold "Seals luggage" which all players and coaches were required to carry, to identify them as the northern California NHL team. On May 22, 1970, the Seals traded their pick in

1442-572: A two decade absence of major league hockey in Ohio since the WHA's Cincinnati Stingers were not included in the merger. However, the NHL worked to keep interest in hockey alive in the state. The Pittsburgh Penguins , who from 1978 to 1991 were owned by Northeast Ohio native Edward J. DeBartolo, Sr. , played two designated home games at the Richfield Coliseum in the early 1990s before the arena

1545-510: A unique typeface, but an alternate logo using a sketch based on a photo of star player Carol Vadnais was used on marketing materials such as pennants, stickers and team programs. The original 1967 California Seals logo recolored in green and gold was often seen on trading cards and other unofficial material, but was never adopted by the team. The Seals are remembered for wearing white skates, but initially Torrey convinced Finley to use green and gold painted skates instead, as team-colored skates were

1648-415: A winning record and only made the playoffs twice. Those two seasons were the only times that the franchise came close to contention. However, the Seals' on-ice struggles were the least of their concerns. The team was sold three times, and spent much of 1974 and 1975 as wards of the league. The team never drew well; attendance was so poor that talk of relocation began as early as the inaugural season. However,

1751-426: Is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce and consequently prohibits unfair monopolies . It was passed by Congress and is named for Senator John Sherman , its principal author. The Sherman Act broadly prohibits 1) anticompetitive agreements and 2) unilateral conduct that monopolizes or attempts to monopolize the relevant market. The Act authorizes

1854-534: Is clarified by examining the three cases cited in Rice to support the statement. In New Motor Vehicle Board v. Orrin W. Fox Co. , automobile manufacturers and retail franchisees contended that the Sherman Act preempted a statute requiring manufacturers to secure the permission of a state board before opening a new dealership if and only if a competing dealer protested. They argued that a conflict existed because

1957-436: Is divided into three sections. Section 1 delineates and prohibits specific means of anticompetitive conduct, while Section 2 deals with end results that are anti-competitive in nature. Thus, these sections supplement each other in an effort to prevent businesses from violating the spirit of the Act, while technically remaining within the letter of the law. Section 3 simply extends the provisions of Section 1 to U.S. territories and

2060-461: Is necessary, in rule of reason cases, for the plaintiff to prove a conspiracy is harmful. It is also necessary for the plaintiff to establish the market relationship between conspirators to prove their conduct is within the per se rule. In early cases, it was easier for plaintiffs to show market relationship, or dominance, by tailoring market definition, even if it ignored fundamental principles of economics. In U.S. v. Grinnell , 384 U.S. 563 (1966),

2163-709: The Clayton Act created exceptions for certain union activities, but the Supreme Court ruled in Duplex Printing Press Co. v. Deering that the actions allowed by the Act were already legal. Congress included provisions in the Norris–La Guardia Act in 1932 to more explicitly exempt organized labor from antitrust enforcement, and the Supreme Court upheld these exemptions in United States v. Hutcheson 312 U.S. 219 . To determine whether

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2266-613: The Dallas Stars in 1993. The Gunds also later moved an existing American Hockey League team from Lexington, Kentucky , to Cleveland, operating the Cleveland Barons from 2001 to 2006 as the Sharks' minor league affiliate. The AHL's Cleveland Monsters are the current team that plays in the city. Note: GP = Games played, W = Wins, L = Losses, T = Ties, Pts = Points, GF = Goals for, GA = Goals against, PIM = Penalties in minutes In their two years in Cleveland, Larry Hirsch served as

2369-572: The Department of Justice to bring suits to enjoin (i.e. prohibit) conduct violating the Act, and additionally authorizes private parties injured by conduct violating the Act to bring suits for treble damages (i.e. three times as much money in damages as the violation cost them). Over time, the federal courts have developed a body of law under the Sherman Act making certain types of anticompetitive conduct per se illegal, and subjecting other types of conduct to case-by-case analysis regarding whether

2472-487: The Montreal Wanderers disbanded during the NHL's inaugural season in 1917–18 after their arena burned down. The situation quickly deteriorated. Amid $ 2.4 million in losses, team workers went unpaid for two months. The bottom fell out in February, when Swig asked the players to take a 27 percent pay cut. The players turned this request down, and the team missed two payrolls. The league seriously considered folding

2575-608: The Stanley Cup Finals . In 1966, the NHL announced that six expansion teams would be added as a new division for the 1967–68 season, officially because of a general desire to expand the league to new markets, but also to squelch the Western Hockey League 's threat to turn into a major league. The San Francisco Seals were one such team from the WHL. The NHL awarded an expansion team to Barry Van Gerbig for

2678-628: The Twin Cities . Meanwhile, a group led by former Hartford Whalers owner Howard Baldwin was pushing the NHL to bring a team to San Jose , where an arena was being built. Eventually, a compromise was struck whereby the Gunds would sell their share of the North Stars to Baldwin's group, with the Gunds receiving an expansion team in the Bay Area to begin play in the 1991–92 season . In return,

2781-533: The playoffs . In 1970–71 , Roy Storey worked play-by-play on KEEN radio while Rick Weaver called 10 games on KTVU. In 1972–73 , Joe Starkey called the games on KEEN radio while Jon Miller worked 15 games (all on delay ) on KFTY 50 . Starkey continued to call the Golden Seals games on KEEN in 1974–75 and 1975–76 . In the Golden Seals' final season, their games were televised on KBHK-TV 44 . Cleveland Barons (NHL) The Cleveland Barons were

2884-453: The 1967 expansion. The NHL, not wanting to endanger its TV deal with CBS, rejected both proposals. As a compromise, the NHL agreed to expand again in 1970 , adding teams in both Vancouver and Buffalo . The Knoxes bought a minority share of the Seals in 1969, only to sell it a year later to fund the Sabres. This, as well as the team's mediocre on-ice performance, led to major changes to both

2987-483: The Act preempts a state law , courts will engage in a two-step analysis, as set forth by the Supreme Court in Rice v. Norman Williams Co. The antitrust laws allow coincident state regulation of competition. The Supreme Court enunciated the test for determining when a state statute is in irreconcilable conflict with Section 1 of the Sherman Act in Rice v. Norman Williams Co. Different standards apply depending on whether

3090-561: The Barons (and their previous incarnations, the Indians and Falcons ) had been one of the pillars of the AHL and its predecessors for 44 years. The NHL approved the move to Cleveland on July 14, 1976, but details were not finalized until late August, less than six weeks before the season opener. There was little time or money for promotion of the new team, and the Barons never recovered from this lack of visibility. They never came close to filling

3193-416: The Barons' radio play-by-play announcer on WJW . On the television side, WUAB channel 43 did a very limited schedule with Steve Albert and Dick Hammer on commentary in 1976–77 , and perhaps only one game in 1977–78 with Charlie Steiner and Pete Franklin on commentary. Sherman Act The Sherman Antitrust Act of 1890 (26  Stat.   209 , 15 U.S.C.   §§ 1 – 7 )

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3296-419: The Barons, but unlike the Gunds their owners lacked the resources to absorb the losses. The Gunds began talks with the North Stars and broached the possibility of merging both teams. The league was initially cool to the idea, but ultimately concluded that it would be far better for its image to announce a transaction that could be called a "merger" than risk two teams folding. The league granted final approval for

3399-534: The Bay Area. By the late 1980s, they sought to relocate the North Stars but were blocked by the league. In 1991, the Gunds were granted an expansion franchise in San Jose , which became the San Jose Sharks , in return for selling their stake in the North Stars to a group led by Hartford Whalers ' founder Howard Baldwin . As a compromise, the league arranged a special dispersal and expansion draft in which

3502-570: The Clayton Act. The amendment proscribed certain anti-competitive practices in which manufacturers engaged in price discrimination against equally-situated distributors. The federal government began filing cases under the Sherman Antitrust Act in 1890. Some cases were successful and others were not; many took several years to decide, including appeals. Notable cases filed under the act include: Congress claimed power to pass

3605-599: The Coliseum in their two years in Cleveland. The team's home opener on October 7, 1976, drew only 8,900 fans. They drew 10,000 or more fans in only seven out of 40 home games. Attendance was worse than it had been in Oakland and the team did not draw as many fans as the WHA's Crusaders had. The Barons were also troubled by an unfavorable lease with the Coliseum. During the All-Star Break in January 1977, Swig hinted

3708-644: The Cow Palace in Daly City (the same facility the NHL rejected as a home for the Seals in 1967) while their new permanent home arena in San Jose was being completed. Dennis Maruk was the last Seals player active in the NHL, retiring as a member of the North Stars in 1989 . The last former Seals player in any league was George Pesut , who was active in Germany until 1994. Though no longer an active team,

3811-502: The District of Columbia. Section 1: Section 2: The Clayton Antitrust Act , passed in 1914, proscribes certain additional activities that had been discovered to fall outside the scope of the Sherman Antitrust Act. The Clayton Antitrust Act added certain practices to the list of impermissible activities: The Clayton Antitrust Act specifically states that unions are exempt from this ruling. The Robinson–Patman Act of 1936 amended

3914-555: The Gunds (by this time majority owners) were permitted to merge the Barons with the equally strapped Minnesota North Stars on June 14, 1978. The merged team continued as the Minnesota North Stars under the Gunds' ownership, but assumed the Barons' place in the Adams Division. The North Stars ultimately relocated to Texas following the 1992–93 season to become the Dallas Stars . The Cleveland Barons remain

4017-461: The NHL claiming that the prohibition violated the Sherman Act . The Seals asserted that the league's constitution was in violation by prohibiting clubs from relocating their operations, and that the relocation request was denied in an attempt to keep the San Francisco market in the NHL and thereby discourage the formation of a rival team or league in that location. The court ruled that the NHL was

4120-483: The NHL consisted of 17 teams for the 1978–79 season . The current NHL team in the Bay Area, the San Jose Sharks , has a historical connection to the Seals. Years after the Barons-North Stars merger, the Gunds wanted to bring hockey back to the Bay Area. They asked the NHL for permission to move the North Stars there in the late 1980s, but the league was unwilling to abandon a traditional hockey market like

4223-646: The November 2017 release of the book, The California Golden Seals: A Tale of White Skates, Red Ink, and One of the NHL's Most Outlandish Teams , which covers the Seals' and Barons' entire history, including their six years in the WHL. The San Jose Sharks unveiled their Reverse Retro jersey based on the final years of the Golden Seals on October 20, 2022. Note: GP = Games played, W = Wins, L = Losses, T = Ties, Pts = Points, GF = Goals for, GA = Goals against, PIM = Penalties in minutes Notes: Includes Cleveland Barons (1976–78) Career: Single season: These are

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4326-577: The Robinson-Patman and Sherman Acts" should be preempted. In both New Motor Vehicle and Exxon , the Court upheld the statutes and rejected the arguments presented as Merely another way of stating that the ... statute will have an anticompetitive effect. In this sense, there is a conflict between the statute and the central policy of the Sherman Act – 'our charter of economic liberty'. ... Nevertheless, this sort of conflict cannot itself constitute

4429-670: The San Francisco Bay area. Van Gerbig decided to purchase the WHL club with the intent of bringing them into the NHL as an expansion team the following season. Van Gerbig had planned to have the team play in a new arena in San Francisco, but the new arena was never built. He decided to move the team across the Bay from the Cow Palace in Daly City to Oakland to play in the new Oakland–Alameda County Coliseum Arena . He renamed

4532-485: The Seals remained a popular subject, and are the subject of multiple works. In 2006, Brad Kurtzberg published the first book on the Seals franchise, Shorthanded: The Untold Story of the Seals: Hockey's Most Colorful Team . In January 2017, filmmaker Mark Greczmiel released his documentary, The California Golden Seals Story on iTunes. In 2016, the Seals tribute site, GoldenSealsHockey.com was founded to help promote

4635-521: The Seals' front office and the roster – only 7 of the 20 Seals players remained after the first season. The new-look Seals were somewhat more successful. In their second season they improved to 69 points, which while still seven games below .500 was good enough for second place in the all-expansion West Division. The Seals were actually favored to win their first round playoff matchup against the Kings, but were upset in seven games. Oakland regressed to 58 points

4738-546: The Seals' sale to the Denver group was not completed or new ownership found locally, the franchise would be liquidated at the end of the season. The Denver arrangement fell through, and the league ran the Seals for more than a year until a group headed by San Francisco hotel magnate Melvin Swig bought the team on July 28, 1975, with the intention of moving the team to a proposed new arena in San Francisco. The team fell just short of

4841-605: The Seals. Nevertheless, while the WHL Seals had drawn well at the Cow Palace the team drew poorly in Oakland once they entered the NHL. The plan to bring fans in from San Francisco failed, and on November 6, 1967, Van Gerbig announced that the team's name would be changed to the Oakland Seals (although the league did not register the change until December 8 to focus more on the East Bay). The Seals were never successful at

4944-549: The Sharks claimed 16 North Stars players in a dispersal draft, with both teams then allowed to choose players in an expansion draft. Although the Sharks are officially a separate franchise from the Seals/Golden Seals/Barons, the arrangement effectively reversed the original Barons–North Stars merger, with the Sharks occupying the same market as the Golden Seals prior to their move to Cleveland. The new North Stars owners ultimately moved their team to Dallas as

5047-422: The Sharks would have the rights to players from the North Stars and then participate with the North Stars as an equal partner in an expansion draft with the new franchise. On May 5, 1990, the Gunds officially sold their share of the North Stars to Baldwin and were awarded a new team in the Bay Area that became the Sharks. Coincidentally, in their first two seasons in the league, the Sharks played their home games at

5150-507: The Sherman Act through its constitutional authority to regulate interstate commerce . Therefore, federal courts only have jurisdiction to apply the Act to conduct that restrains or substantially affects either interstate commerce. (Congress also has ultimate authority over economic rules within the District of Columbia and US territories under the 17th enumerated power and the Territorial Clause , respectively.) This requires that

5253-442: The Sherman Act was adopted, there were only a few federal statutes imposing penalties for obstructing or misusing interstate transportation. With an expanding commerce, many others have since been enacted safeguarding transportation in interstate commerce as the need was seen, including statutes declaring conspiracies to interfere or actual interference with interstate commerce by violence or threats of violence to be felonies. The law

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5356-448: The Sherman Act, 21 Cong.Rec. 2456. It was in this sense of preventing restraints on commercial competition that Congress exercised "all the power it possessed." Atlantic Cleaners & Dyers v. United States, supra, 286 U. S. 435. At Addyston Pipe and Steel Company v. United States , 85 F.2d 1, affirmed , 175 U. S. 175 U.S. 211; At Standard Oil Co. of New Jersey v. United States , 221 U. S. 1 , 221 U. S. 54 -58. The Sherman Act

5459-462: The Sherman Act, the statute "appears firmly anchored to the assumption that the Sherman Act will deter any attempts by the appellants to preserve their ... price level [in one state] by conspiring to raise the prices at which liquor is sold elsewhere in the country". Thus, Seagram indicates that when conduct required by a state statute combines with other conduct that, taken together, constitutes an illegal restraint of trade, liability may be imposed for

5562-458: The States, and the States have no authority to legislate in respect of commerce between the several States or with foreign nations. See also the statement on the floor of the House by Mr. Culberson, in charge of the bill, There is no attempt to exercise any doubtful authority on this subject, but the bill is confined strictly and alone to subjects over which, confessedly, there is no question about

5665-474: The bill which was adopted without change, declared: No attempt is made to invade the legislative authority of the several States or even to occupy doubtful grounds. No system of laws can be devised by Congress alone which would effectually protect the people of the United States against the evils and oppression of trusts and monopolies. Congress has no authority to deal, generally, with the subject within

5768-482: The club the California Seals. This was done in an attempt to appeal to fans from San Francisco, and to address complaints from the other NHL teams that Oakland was not considered a major league city and would not be a draw for fans. A year later, Van Gerbig brought the Seals into the NHL as an expansion team. The team participated with the other five expansion teams in the 1967 NHL Expansion Draft ; however,

5871-530: The conduct unreasonably restrains trade. The law attempts to prevent the artificial raising of prices by restriction of trade or supply. "Innocent monopoly", or monopoly achieved solely by merit, is legal, but acts by a monopolist to artificially preserve that status, or nefarious dealings to create a monopoly, are not. The purpose of the Sherman Act is not to protect competitors from harm from legitimately successful businesses, nor to prevent businesses from gaining honest profits from consumers, but rather to preserve

5974-400: The effect unreasonably restrains trade, and is therefore a violation, can preemption occur. The third case cited to support the "anticompetitive effect" guideline is Joseph E. Seagram & Sons v. Hostetter , in which the Court rejected a facial Sherman Act preemption challenge to a statute requiring that persons selling liquor to wholesalers affirm that the price charged was no higher than

6077-447: The expansion Washington Capitals . Finley soon lost patience with his struggling hockey team, especially given the contrast to his World Series champion Athletics. He tried to sell the Seals, but when no credible buyers came forward who were interested in keeping the team in the Bay Area, he sold the team back to the league for $ 6.585 million. A 1973 attempt by Finley to sell the team to Indianapolis interests who planned to relocate

6180-552: The first round of the 1971 NHL Amateur Draft to the Montreal Canadiens along with Francois Lacombe in return for Montreal's first round pick in the 1970 draft (Seals selected Chris Oddleifson ), Ernie Hicke , and cash. As a result of the Seals' dreadful season , the Canadiens had the top pick in the 1971 draft, and used it to select future Hall of Fame member Guy Lafleur . This transaction now ranks as one of

6283-538: The following season, but still edged out Philadelphia for the final playoff spot on a tiebreaker. Their second playoff appearance was a brief one as they were swept by the Pittsburgh Penguins. Those were the only two years that the franchise made the playoffs. The league's rejection of a proposed move to Vancouver prompted a lawsuit that was not settled until 1974 (San Francisco Seals Ltd. v. National Hockey League) . The Seals organization filed suit against

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6386-563: The gate even after the name change, and because of this poor attendance Van Gerbig threatened on numerous occasions to move the team elsewhere. First-year coach and general manager Bert Olmstead publicly advocated a move to Vancouver , resulting in an offer from Labatt's brewery to purchase and relocate the team to the Canadian city as well as a proposal to move the team to Buffalo from the Knox brothers, who like Vancouver had been shut out of

6489-432: The judgment that such cases are not sufficiently common or important to justify the time and expense necessary to identify them". Another important, yet, in the context of Rice , ambiguous guideline regarding preemption by Section 1 is the Court's statement that a "state statute is not preempted by the federal antitrust laws simply because the state scheme might have an anticompetitive effect". The meaning of this statement

6592-405: The largest seating capacity in the NHL, at 18,544. On paper, the move to Cleveland should have been a shot in the arm for the franchise. Cleveland had been mentioned as a possible NHL city as early as 1935, when the then-struggling Montreal Canadiens considered moving there. It had also been turned down for an NHL expansion team on three previous occasions, in the 1950s and 1960s. Additionally,

6695-616: The last franchise in the four major North American sports leagues to cease operations. Ohio did not have another NHL team until the Columbus Blue Jackets joined the league 22 years later in 2000 . The Barons originated as the California Golden Seals in the 1967 NHL expansion . Based at the Oakland-Alameda Coliseum Arena in Oakland, California ; they were the least successful of the six teams added as part of that expansion. They never had

6798-518: The league's U.S. television contract with CBS required two teams in California. Even after the NHL and CBS parted ways, the league was reluctant to abandon a market as large as the Bay Area . San Francisco hotel magnate Melvin Swig bought the Seals from the league in 1975 for $ 3.5 million. Soon afterward, he hammered out a deal with San Francisco Mayor Joseph Alioto to move the Seals to

6901-504: The legislative power of Congress. And see the statement of Senator Edmunds, chairman of the Senate Judiciary Committee which reported out the bill in the form in which it passed, that in drafting that bill the committee thought that "we would frame a bill that should be clearly within our constitutional power, that we would make its definition out of terms that were well known to the law already, and would leave it to

7004-428: The lowest price at which sales were made anywhere in the United States during the previous month. Since the attack was a facial one, and the state law required no per se violations, no preemption could occur. The Court also rejected the possibility of preemption due to Sherman Act violations stemming from misuse of the statute. The Court stated that rather than imposing "irresistible economic pressure" on sellers to violate

7107-428: The market through misconduct, which generally consists of conspiratorial conduct of the kind forbidden by Section 1 of the Sherman Act, or Section 3 of the Clayton Act. While the Act was aimed at regulating businesses, its prohibition of contracts restricting commerce was applied to the activities of labor unions until the 1930s. This is because unions were characterized as cartels as well (cartels of laborers). In 1914

7210-401: The market to the detriment of purchasers or consumers of goods and services, all of which had come to be regarded as a special form of public injury. For that reason the phrase "restraint of trade," which, as will presently appear, had a well understood meaning in common law, was made the means of defining the activities prohibited. The addition of the words "or commerce among the several States"

7313-484: The merger on June 14, 1978. The amalgamated team retained the North Stars' name, colors, and history, with the wealthier Gunds as majority owners. The Barons are the last team to fold in the NHL unless the inactive Arizona Coyotes are folded by the league after their assets were sold to the Utah Hockey Club in 2024. The NHL finally agreed to absorb the WHA one year later, a development which resulted in

7416-532: The most one-sided deals in NHL history. The team rebounded in 1971–72 , but the arrival of the World Hockey Association (WHA) wiped out most of those gains. Finley refused to match the WHA's contract offers, causing five of the team's top ten scorers from the previous season to bolt to the new league. Devoid of any defensive talent save for goaltender Gilles Meloche , the Seals sank into last place again in 1972–73 , where they would remain for

7519-541: The most recent team in an established North American major professional league to fold. They were also the last actively playing NHL team to do so since the Brooklyn Americans in 1942 (the franchise was formally cancelled in 1946) and the last team to cease operations since the Montreal Maroons had their franchise formally canceled in 1947 (though they had not iced a team since 1938). As a result,

7622-602: The new World Hockey Association (WHA). The Barons played in the suburban Richfield Coliseum in Richfield, Ohio , halfway between Cleveland and Akron . It had originally been built for the WHA's Crusaders (who left to become the second incarnation of the Minnesota Fighting Saints for the 1976–77 WHA season on the Barons' arrival) and the NBA 's Cleveland Cavaliers . At the time, the Richfield Coliseum had

7725-606: The plaintiff must show that the conduct occurred during the flow of interstate commerce or had an appreciable effect on some activity that occurs during interstate commerce. A Section 1 violation has three elements: A Section 2 monopolization violation has two elements: Section 2 also bans attempted monopolization, which has the following elements: Violations of the Sherman Act fall (loosely ) into two categories: A modern trend has increased difficulty for antitrust plaintiffs as courts have come to hold plaintiffs to increasing burdens of pleading. Under older Section 1 precedent, it

7828-438: The playoffs, and after a mayoral election, plans for the new arena were cancelled. With a new arena out of the picture, the league dropped their objection to the relocation of the franchise. Although attendance was finally showing some improvement and the team playing better, minority owners George and Gordon Gund persuaded Swig to seek approval to move the team to their hometown of Cleveland . The team's final game in Oakland

7931-405: The required conduct violates Section 1 and the statute is in irreconcilable conflict with the Sherman Act. Then statutory arrangement is analyzed to determine whether it qualifies as "state action" and is thereby saved from preemption. Rice sets out guidelines to aid in preemption analysis. Preemption should not occur "simply because in a hypothetical situation a private party's compliance with

8034-490: The rest of their history. Although divisional restructuring in 1974–75 included a revamped format in which three teams in each division made the playoffs, the team's efforts were frustrated by their placement in the Adams Division , with the strong Sabres, Boston Bruins , and Toronto Maple Leafs of the day. The Seals once again finished well out of playoff contention, and were notably the only team to lose at home to

8137-403: The restraint without requiring preemption of the state statute. Rice v. Norman Williams Co. supports this misuse limitation on preemption. Rice states that while particular conduct or arrangements by private parties would be subject to per se or rule of reason analysis to determine liability, "[t]here is no basis ... for condemning the statute itself by force of the Sherman Act." Thus, when

8240-454: The rival WHA), Swig, the league and the NHLPA reached a last-minute deal to cover the players' salaries for the rest of the season. Swig contributed $ 350,000, the other 17 owners put up $ 20,000 each, and the NHLPA lent the team $ 600,000. After the team finished last in the Adams Division again, Swig sold his interest to Gund and his brother Gordon . For 1977–78 , the Gunds poured money into

8343-458: The season, the Gunds tried to buy the Coliseum, but failed (they later succeed in buying the Coliseum, and eventually bought the Cavaliers from Ted Stepien in 1983). With the Barons barely registering on Cleveland's sports landscape, the Gunds reluctantly decided to write them off as a lost cause and search for a way out. Years later, Gordon Gund recalled that the decision to disband the team

8446-498: The statute might cause him to violate the antitrust laws". This language suggests that preemption occurs only if economic analysis determines that the statutory requirements create "an unacceptable and unnecessary risk of anticompetitive effect", and does not occur simply because it is possible to use the statute in an anticompetitive manner. It should not mean that preemption is impossible whenever both procompetitive and anticompetitive results are conceivable. The per se rule "reflects

8549-685: The statute permitted "auto dealers to invoke state power for the purpose of restraining intrabrand competition". In Exxon Corp. v. Governor of Maryland , oil companies challenged a state statute requiring uniform statewide gasoline prices in situations where the Robinson-Patman Act would permit charging different prices. They reasoned that the Robinson-Patman Act is a qualification of our "more basic national policy favoring free competition" and that any state statute altering "the competitive balance that Congress struck between

8652-458: The statutory conduct combines with other practices in a larger conspiracy to restrain trade, or when the statute is used to violate the antitrust laws in a market in which such a use is not compelled by the state statute, the private party might be subjected to antitrust liability without preemption of the statute. The Act was not intended to regulate existing state statutes regulating commerce within state borders. The House committee, in reporting

8755-471: The team and holding a dispersal draft for the players; by then, some of the Barons' players were actively being courted by other teams. By February 18, the players had lost their patience, and threatened to not take the ice for their game against the Colorado Rockies . Wanting to avoid the embarrassment of a player strike, as well as a team folding at mid-season (the latter had previously happened in

8858-529: The team back on the market. Prior to the 1970–71 season , Charles O. Finley , the flamboyant and eccentric owner of baseball's Oakland Athletics , purchased the Seals. Finley and Roller Derby boss Jerry Seltzer had both put in bids on the team. Although Seltzer's offer was slightly better financed and included a more detailed plan for revival, a majority of NHL owners from the "old establishment" voted in favor of Finley. General manager Bill Torrey left by mid-season due to clashes with Finley. Finley renamed

8961-456: The team might not finish the season because of payroll difficulties. He asked the board of governors for a bailout. The board turned down Swig's request almost out of hand. At the time, no one in the NHL offices believed that the Barons' situation was nearly as dire as Swig claimed. No NHL team had folded since the Montreal Maroons had their franchise formally canceled in 1947 after not icing a team since 1938. No team had folded in mid-season since

9064-451: The team retained a portion of the club's WHL roster such as Charlie Burns , George Swarbrick , Gerry Odrowski , Tom Thurlby , and Ron Harris . The Bay Area was not considered a particularly lucrative hockey market; however, the terms of a new television agreement with CBS called for two of the expansion teams to be located in California and other than the Kings there were no other prospective franchise applicants of similar pedigree to

9167-412: The team the "Bay Area Seals" to begin the 1970–71 season. However, on October 16, 1970, just two games into the season, he changed the team name to the "California Golden Seals", following a number of other marketing gimmicks intended to promote the team to the fans, among them changing the Seals' colors to green and gold to match those of the popular A's. The team's uniform crest was now the word "Seals" in

9270-423: The team to that city was rejected by the NHL's board of governors. In early 1975, newspapers reported that the Seals and Pittsburgh Penguins were to be relocated to Denver and Seattle , respectively, in an arrangement that would have seen the two teams sold to groups in those cities that had already been awarded "conditional" franchises for the 1976–77 season. At the same time, the league announced that if

9373-574: The team, and it seemed to make a difference at first. The Barons stunned the defending Stanley Cup champion Montreal Canadiens on November 23 before a boisterous crowd of 12,859. After a brief slump, general manager Harry Howell pulled off several trades in an attempt to make the team tougher. It initially paid off, and the Barons knocked off three of the NHL's top teams, the Toronto Maple Leafs , New York Islanders and Buffalo Sabres in consecutive games in January 1978. A few weeks later,

9476-414: The terms imposed by the established Original Six teams were very one-sided in their favor. The existing NHL teams were permitted to protect nearly all of their best players, thus the players available for selection were mostly castoffs, aging players well past their prime and career minor leaguers. To bolster their roster and also to maintain a semblance of familiarity and continuity for existing Seals fans,

9579-543: The top ten scorers for the franchise, including its time in Cleveland. The Golden Seals had the following team captains: In 1967–68 , KTVU 2 televised 12 games with Tim Ryan on play-by-play. In 1968–69 , away games were broadcast on the radio by KEEN with Tim Ryan again on play-by-play. In 1969–70 , Saturday and Sunday games were broadcast by KGO radio. Jim Gordon , Bill Schonely and Bill McColgan each did play-by-play alone on multiple games. Meanwhile, Harvey Wittenberg and Rick Weaver did one game each; Weaver did

9682-503: The trial judge, Charles Wyzanski , composed the market only of alarm companies with services in every state, tailoring out any local competitors; the defendant stood alone in this market, but had the court added up the entire national market, it would have had a much smaller share of the national market for alarm services that the court purportedly used. The appellate courts affirmed this finding; however, today, an appellate court would likely find this definition to be flawed. Modern courts use

9785-401: The use of means which made it impossible for other persons to engage in fair competition." At Apex Hosiery Co. v. Leader 310 U.S. 469 , 310 U. S. 492 -93 and n. 15: The legislative history of the Sherman Act, as well as the decisions of this Court interpreting it, show that it was not aimed at policing interstate transportation or movement of goods and property. The legislative history and

9888-436: The voluminous literature which was generated in the course of the enactment and during fifty years of litigation of the Sherman Act give no hint that such was its purpose. They do not suggest that, in general, state laws or law enforcement machinery were inadequate to prevent local obstructions or interferences with interstate transportation, or presented any problem requiring the interposition of federal authority. In 1890, when

9991-508: Was a win over the Los Angeles Kings on April 4, 1976; league approval for the move was granted on July 14, and the team was renamed the " Cleveland Barons " after the city's old AHL squad. Unfortunately, details were not finalized until less than six weeks before the start of the 1976–77 season, rendering the Barons all but invisible in Cleveland. After two more years of losses and with attendance worse than it had been in Oakland,

10094-441: Was demolished and the land added to Cuyahoga Valley National Park . The NHL finally returned to Ohio in 2000 with the expansion Columbus Blue Jackets . Dennis Maruk was the last Baron (and last Golden Seal as well) to be active in the NHL, retiring from the North Stars after the 1988–89 season with 356 goals in 888 games. With the North Stars continuing to struggle financially, the Gunds began looking to bring NHL hockey back to

10197-444: Was enacted in the era of "trusts" and of "combinations" of businesses and of capital organized and directed to control of the market by suppression of competition in the marketing of goods and services, the monopolistic tendency of which had become a matter of public concern. The goal was to prevent restraints of free competition in business and commercial transactions which tended to restrict production, raise prices, or otherwise control

10300-402: Was especially painful given his family's roots in Cleveland. Kenneth Schnitzer, owner of the WHA's Houston Aeros (who were not being included as part of any proposed merger between the two leagues at the time), offered to buy the Barons and relocate them to Houston, but nothing came of it. Meanwhile, the Minnesota North Stars were also having financial difficulties similar to those faced by

10403-603: Was not an additional kind of restraint to be prohibited by the Sherman Act, but was the means used to relate the prohibited restraint of trade to interstate commerce for constitutional purposes, Atlantic Cleaners & Dyers v. United States, 286 U. S. 427, 286 U. S. 434, so that Congress, through its commerce power, might suppress and penalize restraints on the competitive system which involved or affected interstate commerce. Because many forms of restraint upon commercial competition extended across state lines so as to make regulation by state action difficult or impossible, Congress enacted

10506-415: Was not intended to impact market gains obtained by honest means, by benefiting the consumers more than the competitors. Senator George Hoar of Massachusetts , another author of the Sherman Act, said the following: ... [a person] who merely by superior skill and intelligence...got the whole business because nobody could do it as well as he could was not a monopolist...(but was if) it involved something like

10609-449: Was not settled how much evidence was required to show a conspiracy. For example, a conspiracy could be inferred based on parallel conduct, etc. That is, plaintiffs were only required to show that a conspiracy was conceivable. Since the 1970s, however, courts have held plaintiffs to higher standards, giving antitrust defendants an opportunity to resolve cases in their favor before significant discovery under FRCP 12(b)(6). That is, to overcome

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